AWP comes under more fire

Monday, December 31, 2001

PHILADELPHIA - A group of class-action lawsuits were filed against five drug companies in November claiming the companies raised the price of drugs sold to Medicare, according to The Associated Press.

The lawsuits were filed against, GlaxoSmithKline, Bristol-Myers Squibb Co., Pharmacia Corp., Abbott Laboratories and Dey Inc. in U.S. District Court in Philadelphia.

A lawyer for the plaintiffs said Wednesday that the drug companies' actions resulted in financial losses to individuals and gives doctors an incentive to prescribe inappropriate drugs. The suit seeks an end to the practice and reimbursement for those who overpaid for drugs.

The lawsuits accused the companies of artificially raising the national average wholesale price, the figure the government uses to calculate how much it will pay for drugs covered by Medicare Part B. HME